May 2, 2024

Ukraine firm Ovostar Union increases hen population, boosts egg processing in Q1 2024

Ovostar Union, a producer of eggs and egg products in Ukraine, reported an increase in its total number of hens by 2.7% to 7.31 million during January to March 2024, but the number of laying hens decreased by 4.1% to 6.12 million over the same period, Open4Business reported.

According to the group's report released on the Warsaw Stock Exchange website on Friday, egg production volume in Q1 2024 totalled 331 million eggs, marking a 9% decline compared to the same period in 2023. Correspondingly, sales in the egg segment amounted to 211 million units, reflecting a 12.4% decrease from the previous year.

Export sales of shell eggs in the first quarter of 2024 also experienced a decline of 22.9%, totalling 81 million units, accounting for 38% of the total eggs sold during this period. This figure was lower than the 44% recorded a year earlier.

However, egg processing saw a significant increase of 42% to 132 million eggs in Q1 2024, compared to 92 million in 2023. Ovostar produced 571 tonnes of dry egg products and 3.41 thousand tonnes of liquid egg products, indicating growth from the previous year.

Sales of dry egg products increased by 18.5% year-on-year to 629 tonnes, with 76% being exported. Liquid egg products sales amounted to 3.4 thousand tonnes, marking an 11% increase, with 34% exported.

CEO of Ovostar Union, Boris Belikov, attributed the increase in egg processing to a slight decrease in the number of laying hens and the downward trend in egg prices. He expressed satisfaction with the operating results achieved in the first three months of the year.

Ovostar Union, known for its vertically integrated operations, reported a significant increase in net profit to $29.08 million in the first nine months of 2023, representing a 12.2-fold year-on-year increase. This growth was driven by a 36.3% rise in revenue to $123.06 million, primarily due to higher product prices.

-      Open4Business